The Us Dollar (USD) printed a bullish candle with a price cap of more than 1.3000 on Tuesday. The increase in price results after a piece of a major economic news release. The technical bias might remain bullish because of the lower high pattern printed by the price during the last downside move.
USDCAD: Technical Analysis
The USDCAD is being traded for the price around 1.3276. The price is likely to come across multiple resistance levels including the trend line, Fibonacci and key horizontal resistance levels. At first, there comes a trend line resistance which might push back the price near 1.3295, it’s a 61.8% Fib level. Another resistance stands next around 1.3322, the trend line resistance and then comes 1.3382, the key horizontal resistance level, it may also be called the high of September 03, 2019 as shown in the graph below.
On the downside, the support is there to help the price to stay above than 1.3242, the Fibonacci level ahead of 1.3198, the major horizontal support level and then comes 1.3049, the trend line support which might prevent the price from decreasing below this level as shown in the graph above.
USD Existing Home Sales
From the fundamental point of view, the Existing Home Sales released by the National Association of Realtors has increased from 5.36 M to 5.46 M an expected benefit from housing market situations.
As a touchy factor for the US economy, the housing market creates some instability for the USD. Existing-home deals expected to improve in October after the surprising decline in September The largest US housing class has recovered in the current year after the sharp fall in January.
Therefore, trading the pair around current levels for both short-term and long-term positions may not be a bad idea, as the technical bias seems to remain bullish.
Tip: While technical analysis and fundamental analysis are essential for successful trading, it is also important to choose the right broker.